House Passes Budget Quickly with Eight Percent Spending Increase
Yesterday, the Kentucky House passed a budget for FYs 2013-2014.
While most of the legislative discussion centers on cuts, the General Fund budget totals $19.5 million which represents an 8% increase over FY 2011-2012.
Even if you compare it only to FY 2012, it represents a 5% increase in spending.
The details of the budget are sparse, but it was revealed that the budget maintained a debt ratio of 6.7%, which is the highest in Kentucky's history and sure to worry the commonwealth's already concerned creditors.
There are no doubt other details that will disappoint taxpayers, but the weight of the debt alone is enough to sink this proposal. A cynic might propose that the legislature is deliberately financing the budget with record debt because they intend to approve the tax increases that will be proposed by the Governor's tax reform commission...
It is a KEY VOTE, and all the more reason to pass SB 1.
